Additionally on this letter:
- SBI invests $20 million in Pine Labs
- UPI transactions scale new peak in December
- Key moments from the Elizabeth Holmes trial
Flipkart’s companies register sturdy income progress in FY21
Flipkart India, the group’s wholesale unit, reported revenue growth of 25% in FY21, whereas Flipkart Web, {the marketplace} arm, grew 32%.
- Flipkart Web clocked an operational income of Rs 7,840 crore for the interval beneath evaluate however its losses elevated by 49% to Rs 2,881 crore.
- Flipkart India in the meantime noticed a 25% improve in income to Rs 42,941 crore in FY21, whereas its losses fell by 22% to Rs 2,445 crore.
Flipkart Web generated 36% of its income from market charges whereas 31% got here from providing logistics providers. Fee gateway providers contributed 11% to income in FY21 whereas promoting and different providers had a share of round 18%, the filings confirmed.
Construction: Ecommerce main Flipkart’s mum or dad firm is registered in Singapore and it operates in India by way of a variety of models. Its core on-line retail enterprise is beneath Flipkart Web, and Flipkart India is the wholesale unit, which largely sells and buys items in bulk to and from suppliers and sellers.
Flipkart Web generates income by way of market charges, which is a mix of charges it costs from sellers for offering its platform, cost gateway providers, delivery, and different providers. Flipkart additionally has different models for funds and logistics.
Focus areas: CEO Kaylan Krishnamurthy told ET in an interview on Monday that Flipkart plans to scale verticals like grocery and hyperlocal deliveries together with its value-focused platform Shopsy.
He mentioned the Bengaluru-based firm, majority owned by US-based Walmart, will double down on these bets, and push healthcare and journey, through which it made strategic investments final yr, as a substitute of diversifying additional this yr. The final two years have been primarily about launching new merchandise, however in 2022 “we are going to scale all of those companies”, he mentioned. “Shopsy, grocery, journey and healthcare, these are huge and we made huge investments … We wish to actually get these to the subsequent stage of progress and pull in buyer adoption over the subsequent 12-18 months.”
State Financial institution of India invests $20 million in Pine Labs
Pine Labs CEO Amrish Rau
On-line funds and service provider options agency Pine Labs mentioned State Financial institution of India (SBI) has invested $20 million in the company, however didn’t share any additional particulars of the funding.
In an announcement, Pine Labs mentioned it might spend money on scaling its new product Plural, a cost gateway.
Raking it in: IPO-bound Pine Labs raised round $700 million throughout a number of tranches final yr and was final valued at $3.5 billion.
We reported in December that it was in superior levels of talks to raise at least $100 million from Falcon Edge and that the entire funding spherical may improve to $200 million.
US IPO plan: Pine Labs, finest identified for its offline service provider funds instrument, is also looking to list in the US within the first half of 2022, we reported final month.
“Prior to now yr, a number of marquee buyers have positioned their belief in our enterprise mannequin and progress momentum and that may be a gratifying feeling. This affiliation with SBI is a personally satisfying expertise as I had began my profession promoting monetary providers expertise to SBI,” mentioned Amrish Rau, chief govt of Pine Labs.
Curefoods picks up 5 extra manufacturers: In the meantime Curefoods, a cloud kitchen startup, has acquired five more brands to strengthen its direct-to-consumer play and create a home of manufacturers. The corporate now has greater than 20 manufacturers in its portfolio and can look to extend this to 25 by the center of the yr.
Ninjacart’s Rs 100-crore inventory choice buyback: Ninjacart, a contemporary produce provide chain startup, mentioned that it has executed an ESOP buyback of Rs 100 crore.
Each present and former staff with vested ESOPs as of December 2021 are eligible to take part within the buyback, with the choice to promote all of their vested ESOPs. That is the corporate’s second inventory choice buyback—the primary one was carried out in 2019.
Additionally Learn: Flipkart tops Indian tech Esops list with Rs 17,000 crore pool
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ETtech Accomplished Offers
■ NewQuest Capital Companions and current investor PremjiInvest have infused Rs 507 crore in iD Recent Meals. Early investor Helion Ventures made an exit with a 10X return.
■ Geniemode, a business-to-business cross-border e-commerce startup, has picked up $7 million in a Sequence A funding spherical led by Information Edge Ventures, the funding arm of Information Edge.
UPI transactions scale new peak in December 2021
Transactions made utilizing the Unified Funds Interface (UPI) scaled a new peak in December 2021, surpassing the earlier report set in October, when the worth of UPI transactions crossed $100 billion for the primary time.
- In truth, the amount and worth of month-to-month UPI transactions have practically doubled because the begin of 2021.
In accordance with knowledge put out by the Nationwide Funds Company of India, 456 crore UPI transactions amounting to about Rs 8.27 crore have been carried out final month. That compares with 422 crore transactions price about Rs 7.71 lakh crore in October, and 230 crore transactions price Rs 4.31 lakh crore final January.
UPI transactions hit a peak in October on the again of the festive season gross sales. There was a marginal dip in November earlier than a surge in December. In all of 2021, greater than 3,800 crore UPI transactions amounting to Rs 73 lakh crore have been carried out.
NPCI now expects the UPI platform to hit a billion transactions per day after the Reserve Financial institution of India permits using UPI wallets for low-value offline transactions. A framework for this was released by the central bank on Monday. It will permit funds to be made with out placing strain on the core banking techniques at lenders.
Theranos verdict: Key moments from the Elizabeth Holmes trial
Theranos founder Elizabeth Holmes
A jury within the US has discovered Theranos founder Elizabeth Holmes guilty of defrauding investors within the blood testing startup, convicting her on 4 of 11 counts.
Prosecutors mentioned Holmes, 37, swindled personal buyers between 2010 and 2015 by convincing them that Theranos’ small machines may run a variety of exams on only a single drop of blood from a finger prick.
She was convicted of investor fraud and conspiracy, however acquitted on three counts of defrauding sufferers who paid for exams from Theranos, and a associated conspiracy cost. Holmes rose to fame after founding Theranos in 2003 on the age of 19. She attracted each high-profile rich buyers and board members together with media mogul Rupert Murdoch.
Here are the key moments from her trial.
Former Secretary of Protection testifies: Arguably essentially the most high-profile individual to take the stand, aside from Holmes, was James Mattis, a retired four-star normal who served as Secretary of Protection beneath Donald Trump and sat on Theranos’ board from 2013 to 2016. The prosecution mentioned bringing extremely credible folks comparable to Mattis on board was one of many methods through which Holmes used “borrowed credibility” to perpetuate the fraud.
Mattis mentioned he was within the gadget’s attainable army functions as a result of he thought it may carry out the vary of blood exams the corporate claimed it may. “I’d not have been thinking about it have been it not,” he mentioned.
Holmes takes the stand: One of many largest questions across the trial was whether or not Holmes would take the stand in her personal defence. In the long run, she testified for practically 24 hours over seven court docket days.
Whereas Holmes was largely calm, even smiling at instances, she grew to become emotional at a number of factors whereas speaking about her ex-boyfriend Ramesh ‘Sunny’ Balwani, Theranos’ former president and COO. Balwani, who faces the identical costs as Holmes and has pleaded not responsible, is ready to be tried quickly.
Click here for the full report.
Additionally Learn: Elizabeth Holmes and the story of Theranos
Social commerce market will hit $1.2 trillion by by 2025: Accenture
The worldwide social commerce market will develop two-and-a-half instances from $492 billion in 2021 to $1.2 trillion by 2025, with India’s market rising the quickest over this era, according to a report by consulting firm Accenture. That’s thrice quicker than conventional ecommerce is anticipated to develop, the report mentioned. By 2025, social commerce is anticipated to account for 17% of all ecommerce spending, as much as 10% at the moment, it added.
Social commerce refers to transactions that happen completely inside the context of a social media platform, that means that click-through adverts on social media platforms that take customers to a model’s personal web site don’t qualify.
Titled ‘Why purchasing’s set for a social revolution’, the report was primarily based on a web-based survey of 10,053 social media customers in China, India, Brazil, the US and the UK from August 12 to September 3, 2021. It additionally concerned in-depth interviews with buyers and sellers from these 5 markets in Might and June.
Quickest progress in India: The report mentioned that although China would stay essentially the most superior market each in dimension and maturity, the very best progress can be seen in growing markets comparable to India and Brazil. “In these markets, social commerce has the potential to leapfrog ecommerce as new enterprise fashions permit for larger participation in digital commerce throughout all spectrums of society,” it mentioned.
Accenture mentioned that India’s social commerce market is anticipated to develop at a 59% compound annual progress charge (CAGR) to $17 billion in gross merchandise worth (GMV) by 2025. Brazil’s market will develop at 30% CAGR to $5 billion over the identical interval. China’s social commerce market will develop at 26% to greater than $1 trillion, whereas the US market will develop at 25% to only beneath $100 billion, lower than a tenth of China’s.
Immediately’s ETtech Prime 5 e-newsletter was curated by Zaheer Service provider in Mumbai. Graphics and illustrations by Rahul Awasthi.
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